Financial risk is defined as the:
A)credit risk associated with the firm's borrowing
B)equity risk that is derived from a firm's daily operations
C)equity risk that comes from the capital structure of a firm
D)risk associated with a firm's level of surplus cash
E)probability that a firm's weighted average cost of capital (WACC)will increase

Question

Quizplus · Accepted Answer

Financial risk refers to the equity risk that arises from the firm's capital structure, specifically the use of debt financing.

Financial Risk Is Defined as The